We are SSI exporter mnufacturer. Our accounts were wrongly classified as NPA and Sarfaesi act was invoked immediately after NPA. Out of total exposure of 80 lakhs on NPA date, we paid the bank 5 Lakhs and 30 Lakhs was receieved from ECGC by way of claim under bank's Pre shipment whole turnover policy. As per banks policy with ECGC this claim is paid under recourse to be recovered from Exporter and repaid to ECGC.
The claim amount is lying in suspense account at bank and our ledger balance is showing outstanding to this extant.
The bank has filed OA at DRT for recovery of this amount of 30 Lakhs already receieved from ECGC + uncharged interest. Besides our arguments concerning wrong NPA classifiaction inspite of no dues, illegal invocation of sarfaesi act, contionous refusal for debt restructure/ nursing etc. resulting in sickness and bankruptcy - are the following arguments legally correct:
- Since the bank has already received the amount there is no Debt due and the suit should be dismissed.
- Since the bank charged us monthly premium for this policy the claim amount should not be recovered from us and should be credited to our account.
-
RBI - DBOD No.DIR. (Exp).BC. 01 /04.02.02/2006-07 July 1, 2006
Circular on Rupee Export Credit
2.6 ECGC Whole Turnover Post-shipment Guarantee Scheme
2.6.1 The Whole Turnover Post-shipment Guarantee Scheme of the Export Credit Guarantee Corporation of India Ltd. (ECGC) provides protection to banks against non-payment of post-shipment credit by exporters. Banks may, in the interest of export promotion, consider opting for the Whole Turnover Post-shipment Policy. The salient features of the scheme may be obtained from ECGC.
2.6.2 As the post-shipment guarantee is mainly intended to benefit the banks, the cost of premium in respect of the Whole Turnover Post-shipment Guarantee taken out by banks may be absorbed by the banks and not passed on to the exporters
The significant point here is, RBI advises banks not to pass on the ECGC premium to exporters towards the Post shipment guarantee of ECGC. It is intentionally silent about ECGC premium to be charged to exporters in case of ECGC pre-shipment advances guarantee. Therefore, it can be safely concluded that if ECGC premium for pre-shipment advances is charged to the exporter then he should the beneficiary of the claim amount. In short, whoever pays the insurance premium should be the beneficiary. This is the universal law.
Please advise. Thanks in advance.
